Explosions reported in Jerusalem and the Israeli army said it is working to intercept missiles launched from Iran

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Context

The reported explosions in Jerusalem and the Israeli army's actions against missiles launched from Iran indicate a significant escalation in tensions in the Middle East, which is likely to have immediate implications for risk sentiment across markets. Such geopolitical events typically lead to a flight to safety, benefitting havens like gold and the USD, while also impacting energy prices through potential supply disruptions. Traders should watch for market reactions in related currency pairs and commodities as this situation develops.

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